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The 35-year-old Kaplans, hailing from Long Island’s Great Neck, are named in a fresh superseding indictment that was filed in Central Islip federal court on Thursday, Feb. 20, charging them with an additional count of money laundering.
Adam Kaplan was additionally charged with wire fraud, bank fraud, and obstruction of justice, according to the US Attorney’s Office in the Eastern District.
The new charges paint a picture of an alleged fraudster who didn’t stop even after being caught—continuing his criminal schemes while out on bond and attempting to silence witnesses by threats and bribery, prosecutors alleged.
The Kaplan brothers ran an elaborate multi-million-dollar scam under the guise of investment advisors between 2018 and 2022, according to investigators. Among their ruses were overbilling clients by altering advisory fee agreements, raking in an extra $540,000, prosecutors said.
They also forged checks and fraudulently charged credit cards, stealing at least $4 million, some of which went toward luxury purchases and other expenses, according to investigators.
Between April 2023 and September 2024, while aware of the federal grand jury investigation into their alleged misconduct, Adam Kaplan attempted to threaten or injure witnesses in the case, prosecutors said. He also attempted to pay off other witnesses and destroy evidence, they alleged.
In one instance, Adam Kaplan directed an associate to create a phony email from a victim in order to use it as evidence at trial and impugn their credibility, according to prosecutors.
On another occasion, Adam Kaplan threatened a witness by telling an associate that the victim should be “peeing blood,” and another should be “missing teeth,” prosecutors alleged. He allegedly instructed the associate to send a skull and crossbones image to intimidate the witness.
After his arrest in July 2023 and while out on a multimillion-dollar bond, Adam Kaplan attempted to bribe a Justice Department official, committed another $1 million worth of fraud, and continued to pay off witnesses, prosecutors alleged.
“To perpetuate these crimes, Adam Kaplan used multiple burner phones to avoid detection and monitoring by law enforcement, used aliases, attempted to break into others’ email accounts and attempted to destroy evidence,” the US Attorney’s Office said in a statement.
Both Kaplan brothers are expected to be arraigned on the new charges at a later date. If convicted, they could spend decades behind bars.
Authorities urged any former clients of the Kaplans who suspect they were defrauded to file a complaint at www.iC3.gov and reference their names.
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